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Varto Company has 9,400 units of its sole product in inventory that it produced last year at a cost of $30 each. This year's model
Varto Company has 9,400 units of its sole product in inventory that it produced last year at a cost of $30 each. This year's model is superior to last year's, and the 9,400 units cannot be sold at last year's regular selling price of $43 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $9 each, or (2) they can be reworked at a cost of $194,900 and then sold for $29 each. Prepare an analysis to determine whether Varto should sell the products as is or rework them and then sell them. ears anbs I INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue Incremental net income(Loss) The company should
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